Earlier this year, quite a few people in the real estate investing industry had their eye on properties in Texas. Most were concerned about prices of oil, and how they were going to affect the housing market in the Lone Star State...and many forecasts weren’t that good. In fact, Credit Suisse predicted a 20% drop in home construction because of the dropping oil prices.
But what about investment property?
Forbes’ annual list of the best cities to invest in housing for the upcoming year placed Austin, Texas as number one with Houston coming in at third. However, new data has been analyzed by HomeVestors and Local Market Monitor and there’s a slight change to the top city on the list.
The Houston-Baytown-Sugar Land region is now considered the best area for real estate investment opportunities followed by Austin-Round Rock and Dallas-Plano-Irving. Clearly, the real estate investment market in the Lone Star State is red hot right now.
Houston is #1
“Texas continues to be a sure bet when it comes to real estate investing,” stated David Hicks, the co-president of HomeVestors.
Ingo Winzer, the president of Local Market Monitor, believes that the top cities on this list all have one thing in common: fast-growing economies. Local Market Monitor is a data company that looks at home prices and economic factors in 300 housing markets across the nation.
The key to maximizing your earning potential with real estate is to invest in cities that have strong job growth and are places where people are moving to. By doing that, the pool of potential tenants for your rental property will grow and grow as time goes by.
In the Houston area specifically, job growth has outpaced all other major U.S. cities since December of 2011. Additionally, Houston topped Forbes’ list of America’s fastest growing cities in a report released back in January. Both are definitely very good signs for the real estate industry in this area.